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Jul 7, 2022 · Permissible Purposes for Furnishing, Using, and Obtaining Consumer Reports. The Consumer Financial Protection Bureau (Bureau) is issuing this advisory opinion to outline certain obligations of consumer reporting agencies and consumer report users under section 604 of the Fair Credit Reporting Act (FCRA). This advisory opinion explains that the ...
- What Is A “Permissible Purpose”?
- The Key Elements of Permissible Purposes
- Examples of Permissible Purposes as Defined by The FCRA
- Violations of The Permissible Purpose Clauses
- Your Legal Rights If A Creditor Violates Permissible Purpose Clauses
- Wrap Up
According to the FCRA, a "permissible purpose" is any circumstance or situation in which a credit reporting agency, like one of the big credit bureaus, is legally allowed to provide consumer credit information to a creditor, like a lender. Similarly, a permissible purpose includes any circumstances where a creditor can request information about a c...
There are two primary elements to all permissible purposes as outlined by the FCRA: 1. The information requested is consumer-specific – that is, the requested information is about one individual and their credit history, not about an entire group or the credit information about people related to them. Because of this element, credit bureaus/CRAs ma...
Fortunately for both consumers and creditors alike, the Fair Credit Reporting Act includes a list of all permissible purposes currently recognized under the law. It's located in FCRA Section 604. Permissible purposes include: 1. Being ordered by a court or federal grand jury subpoena 2. Upon instruction by a legal consumer in writing (i.e., consume...
Unfortunately, not everyone follows the permissible purpose clauses to the letter, either intentionally or inadvertently. For instance, a creditor, like a lender, may request a consumer’s credit information from a credit bureau as a preliminary measure to determine what kinds of loans they may qualify for. This is not a permissible purpose since it...
If a creditor or credit bureau violates the FCRA and gives or requests your credit information without a permissible purpose, you have certain legal grounds and rights. For instance, say that you discover your landlord pulled your credit information after already accepting your lease. You’ve lived at your apartment for two years and you aren’t up f...
A permissible purpose under the FCRA is a legitimate reason to retrieve credit information about an American consumer. Lenders, banks, and other creditors may only request credit information from the credit bureaus under a permissible purpose; if they don’t, they could be liable for legal action from consumers. Reach out to legal representatives if...
Jan 1, 2001 · 15 U.S. Code § 1681b - Permissible purposes of consumer reports. In response to the order of a court having jurisdiction to issue such an order, a subpoena issued in connection with proceedings before a Federal grand jury, or a subpoena issued in accordance with section 5318 of title 31 or section 3486 of title 18.
Jul 12, 2022 · This advisory opinion explains that the permissible purposes listed in FCRA section 604 (a) (3) are consumer specific, and it affirms that a consumer reporting agency may not provide a consumer report to a user under FCRA section 604 (a) (3) unless it has reason to believe that all of the consumer report information it includes pertains to the c...
May 6, 2021 · The FCRA includes several different “permissible purposes.”. For example, a user may have a “permissible purpose” to obtain and use consumer report information: in accordance with a consumer’s written instructions; for employment purposes; for underwriting insurance; in connection with the extension of credit to, or the review or ...
Advisory Opinion: FCRA permissible purpose requirements for furnishing, using, and obtaining consumer reports. Advisory Opinion: Consumer reporting agencies’ matching practices under the FCRA.
Feb 16, 2024 · Certain organizations must have what is called a "permissible purpose" for a credit bureau to grant them access to your credit report. Permissible purpose usually covers...
